Single-family Home Conversion to a Multi-Family
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $520,000
Cash invested: $175,000
Purchased this 800 SQFT single family home and CURRENTLY converting it into (2) units with 2beds/1bath each. Permit approval took 1 year and 5 months.
What made you interested in investing in this type of deal?
California's new ADU laws.
How did you finance this deal?
Conventional Loan, 30 year fixed.
How did you add value to the deal?
Adding an attached 2nd unit to the back of the property.
What was the outcome?
In progress, plans approved, construction started.
Lessons learned? Challenges?
Municipalities in California don't take Governors mandate serious to turn these plans to add ADU's in 30 days. It took 1 year and 5 months to get plans approved to add the 2nd unit.